I think in our market here in Calgary you are better to find the properties in the nicer areas that have a better potential for capital appreciation, and take that into consideration more so than high positive cashflow.

To get work done, you might need to pay considerably higher prices to get ones who are honest, reliable and qualified. 

I really think you want to take many factors into consideration when analyzing.

The existing condition of the property isn't as much of a consideration...the value of that land with an income-generating unit exceeds the current costs. 

The main consideration should be engaging a CPA who specializes in real estate.

Purchase Price: 272,000SQFT: 1240Closing Cost: $8160Down Payment: 20%, 54,400 @ 4.5 Interest rate - 30 years Monthly Payment - approx. 1103Rent Income: $2100Property Taxes: 182/monthInsurance: $83.33/monthVacancy: $100/month Capex: $100/monthRepairs: $50/monthUtilities - Tenants PayCashflow: $482 = ($2100-$514.75(expenses)-$1102(mortgage)ROI: 9.26%HOA: 0Management:  0, starting out managing myself Travel: 0 Is there anything I left out that should be a major consideration or did I underestimate? 

Thank you, Curtis Rouse .I am familiar with most valuation metrics and want to start learning about different operational consideration in the multi-family context.Any insight into how operations differ in a 5-unit compared to a 50-unit for example?

Now, with lot rent so high take into consideration the total payment made by the buyer each month.

Agreed as well, with Steve, it is common for an owner to use a room as a bedroom and consider it as such and as stated it needs to be a legal bedroom, average ceiling height 7', 90 sq ft I believe is a HUD requirement, window, a 3/0 I believe and a closet that opens into that room.

No right or wrong, just your considerations, how would you select the business type, best to least?